OppenheimerFunds, Inc., Launches Two Oppenheimer Rochester® Municipal Funds

ROCHESTER, N.Y., Dec. 6, 2010 /PRNewswire/ -- OppenheimerFunds, Inc. (OFI), a leading asset manager, today announced the launch of Oppenheimer Rochester® Short Term Municipal Fund and Oppenheimer Rochester® Intermediate Term Municipal Fund, which are designed for U.S. investors who seek income that is exempt from federal personal income taxes and may be focused on a specific time horizon.  With these new national funds, the roster of Oppenheimer Rochester municipal bond funds includes 5 national municipal bond funds and 15 state-specific funds.  

"For more than 20 years, the Rochester way has been focused on creating yield-driven total returns over the long term for investors seeking competitive levels of tax-free income," said Digby Clements, a senior vice president of OppenheimerFunds, Inc., and the investment brand manager of OppenheimerFunds/Rochester.  "These new funds are designed to appeal to investors who may want to diversify their holdings across time horizons or may have different time horizons than those we have previously targeted.  Like our three popular limited term funds, the new funds will seek to maintain 95% of assets in investment grade municipal bond securities."(1)

Oppenheimer Rochester Short Term Municipal Fund and Oppenheimer Rochester Intermediate Term Municipal Fund will invest in municipal bond securities and will seek to maximize tax-free income for shareholders.  Investments in securities that are expected to increase an investor's exposure to the federal alternative minimum tax (AMT) will be limited to 5% of net assets in each fund.  Investors should note that a portion of some distributions may be taxable and may increase AMT for investors subject to that tax; distributions from net realized capital gains are taxable as capital gains.(2)

These funds may invest in municipal bond securities of any duration.  The short term fund will seek to maintain an average effective maturity of 2 years or less and the intermediate term fund will seek to maintain an average effective maturity of 3 to 7 years.  

The two new funds will be managed by the Portfolio Management team of OppenheimerFunds/Rochester, which is led by Dan Loughran, a Senior Vice President of OppenheimerFunds, Inc., and a Senior Portfolio Manager at OppenheimerFunds/Rochester.  

The Rochester investment team -- which includes 17 experts in portfolio management and credit research -- works cohesively to identify and invest in municipal bonds that meet its credit criteria.  With a proven approach that was first established more than 20 years ago, the professionals at OppenheimerFunds/Rochester have helped countless investors realize their goals for tax-free fixed income.  The investment team has a value-oriented, research-intensive and security-specific approach to fund management and seeks to identify market inefficiencies that can generate long-term, yield-driven total returns to investors. 

"Given the degree of uncertainty that today's investors face, we feel it is important to provide investors with a greater variety of fund offerings, all of which adhere to our time-tested approach to fund management," Mr. Clements said.  "These funds should attract investors who wish to adjust their tax-free holdings in keeping with their own perspectives about the state of the economy and the potential impact of tax reform."

Further information about the Rochester style of fund management is available at www.oppenheimerfunds.com, www.rochesterway.com and www.twitter.com/rochesterfunds.

About OppenheimerFunds, Inc.

OppenheimerFunds, Inc. is one of the nation's largest and most respected investment management companies. As of September 30, 2010, OppenheimerFunds, Inc., including subsidiaries, managed more than $165 billion in assets, including mutual funds having approximately 6 million shareholder accounts.

(1) Oppenheimer Rochester municipal bond fund portfolios include securities that have been rated by at least one Nationally Recognized Statistical Rating Organization ("NRSRO"), such as Standard & Poor's ("S&P"), and unrated securities.  For securities rated only by an NRSRO other than S&P, the Manager converts that rating to the equivalent S&P rating.  If two or more NRSROs have assigned a rating to a security, the highest rating is used.  "Investment-grade" securities are securities rated within the NRSROs' four highest rating categories.  Securities not rated by an NRSRO – also known as unrated securities – may or may not be the equivalent of investment grade.  Unrated securities do not necessarily indicate low credit quality. For the purposes of this discussion, the threshold percentage levels are met with a combination of securities rated by an NRSRO and unrated securities.  

(2) Certain distributions may also be taxable as ordinary income.

Fixed-income investing entails credit risks and interest rate risks. When interest rates rise, bond prices fall and a fund's share price can fall. Further, a portion of some funds' distributions may be taxable and may increase alternative minimum tax (AMT) for investors subject to that tax; distributions from net realized capital gains are taxable as capital gains.

The funds invest in below-investment-grade debt securities, which may entail greater credit risks, as described in each fund's prospectus. These securities (sometimes called "junk bonds") may be subject to greater price fluctuations and risks of loss of income and principal than investment-grade municipal securities. The funds can also maintain a relatively high portion of their holdings in particular segments of the municipal securities market, and their portfolios will therefore be vulnerable to economic or legislative events that affect the issuers in those segments of the municipal securities market.

Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.

Before investing in any of the Oppenheimer funds, investors should carefully consider a fund's investment objectives, risks, charges and expenses. Fund prospectuses and, if available, summary prospectuses contain this and other information about the funds; these documents may be obtained by asking your financial advisor, visiting our website at www.oppenheimerfunds.com or calling us at 1.800.CALL OPP (1.800.225.5677). You may also contact us for performance data current to the most recent month-end. Read the prospectus and, if available, the summary prospectus carefully before investing.

OppenheimerFunds are distributed by OppenheimerFunds Distributor, Inc. Two World Financial Center, 225 Liberty Street, New York, NY, 10281

© 2010 OppenheimerFunds Distributor, Inc.

SOURCE OppenheimerFunds, Inc.